Law and regulation

Banking groups fear the Consumer Financial Protection Bureau is already gearing up to write tough new rules restricting the use of arbitration clauses despite promises by agency officials that a study on the issue was only "preliminary" and not designed to pass judgment.

In theory, the FDIC's plan to seize and dismantle a troubled megabank is the furthest thing from a government bailout. But experts are increasingly worried that even if the plan works as promised, it might be perceived differently by the public.

Buyers of failed banks and the Federal Deposit Insurance Corp. have mutual interests in closing out loss-share agreements even before they are due to sunset in coming years.

Bank of America Corp.'s Merrill Lynch agreed to pay about $131 million to settle U.S. regulatory claims it failed to tell investors that hedge fund Magnetar Capital LLC had a role in selecting assets for two 2006 mortgage-backed securities.

The Debit Network Alliance, formed this week through the collaborative effort of ten PIN debit networks, is seeking the membership and cooperation of other industry players, including the major card brands.

The first new bank in three years recently cleared the hurdles necessary to open its doors. To do so, Bank of Bird-in-Hand's backers had to file 18 inches of paperwork, raising the question of whether regulators have become so strict that they'll encourage financial innovators to go elsewhere and leave community banks to languish.

WASHINGTON — Former New Hampshire Sen. Judd Gregg is stepping down from his role as chief executive of the Securities Industry and Financial Markets Association after just seven months on the job, the Wall Street trade group said Thursday.

Financial institutions and their respective lawyers are in the process of understanding the final Volcker Rule.

A response to Boston Fed President Eric Rosengren.

Northwest Bancorp. (NBCT) in Spokane, Wash., has raised $12.5 million after selling common stock and issuing subordinated notes and warrants.

The Consumer Financial Protection Bureau is taking a strong stance against lenders that use contract clauses that block consumers from going to court in a report due out Thursday that will likely lead to new regulations.

The Federal Financial Institutions Examination Council on Wednesday issued final guidance aimed at helping, banks, credit unions and other financial institutions manage risks related to social media.

The Department of Housing and Urban Development on Wednesday released its final rule defining what constitutes a "qualified mortgage."

The Dodd-Frank Act requires banks with at least $10 billion of assets to conduct annual stress tests, but experts say many banks below the outset already have a process or have plans to begin testing.

The Volcker Rule may finally be out, but the process of understanding the intricacies of the complex regulation that bans the largest banks from making risky trades has only just begun.

Royal Bank of Scotland (RBS) will pay $100 million to state and federal regulators to settle allegations that it violated sanctions on doing business with Iran, Sudan, Myanmar and Cuba.

After three years with regulators at odds with each other, the five agencies have finalized Dodd-Frank's Volcker Rule.

MasterCard Inc. said its board of directors approved an 83 percent dividend increase and a 10-for-1 stock split.

The Chairman and CEO of JPMorgan Chase framed his bank's record-setting $13 billion settlement as a business decision — but acknowledged that he now has work to do to repair ties with Washington.

Despite widespread concerns at community banks, industry experts assert that regularly testing can help bankers with strategic planning.